While Elon Musk is running President Trump’s Department of Government Efficiency (DOGE), in an attempt to find waste and fraud and cut the size of the federal government, the companies he runs have not gotten much of his attention. That may be the reason his net worth has declined by over $30 billion to $402 billion this year. However, he is still the richest man in the world, according to the Bloomberg Billionaire Index.
What Happened to Tesla?
A falling share price.
Tesla Inc. (NASDAQ: TSLA | TSLA Price Prediction) stock has dropped sharply this year. Musk owns over 10% of the company. Its shares have fallen almost 13% since the start of the year. That reduced its market cap to $1.16 trillion. The electric vehicle (EV) maker has had some bad news recently. Tesla’s sales declined 59% year over year in Germany in January. In the same month, sales dropped 11.5% in China, the world’s largest EV market.
Tesla’s recently released numbers for 2024 show there is a chance that its growth years are behind it. Deliveries worldwide declined by 1.1% to 1.8 million.
In the United States, Tesla still has close to 50% of the market, but Ford, GM, and Hyundai are posting growth. American EV sales overall have been lackluster. Potential U.S. buyers still worry about the number of charging stations, charging time, and high prices for new EVs.
Looking forward, Tesla’s market cap continues to rely on the fact that some investors look at the company as an artificial intelligence (AI) play. Musk says that his vehicles will soon become completely autonomous and will not need drivers at all.
His Other Companies
Rockets and AI and more.
Musk’s net worth also relies on the most successful rocket maker in the world. SpaceX controls the U.S. rocket business and is the leader of the global industry. Its rockets loft satellites, cargo, and people to space for NASA, the Pentagon, and commercial partners. It is building out a large network of Starlink satellites providing global internet service. Musk owns 42% of SpaceX and has 79% of the company’s voting shares. SpaceX was recently valued at $350 billion.
Among Musk’s other holdings is xAI, a major rival to OpenAI in the race to control the future of AI. xAI recently raised $6 billion, which puts its value at $50 billion. Musk owns over half of xAI.
Musk owns parts of several other companies, including social media platform X and implantable brain-computer interface operation Neuralink.
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